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The president says the budget will send out the
right signals
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US president George W Bush has pledged to
introduce a "tough" federal budget next February in a bid to halve
the country's deficit in five
years.
The US budget and its trade deficit are both deep in the red, helping
to push the dollar to lows against the euro and fuelling fears about the
economy.
Mr Bush indicated there would be "strict discipline" on non-defence
spending in the budget.
The vow to cut the deficit had been one of his re-election
declarations.
The federal budget deficit hit a record $412bn (￡211.6bn) in the 12
months to 30 September and $377bn in the previous year.
"We will submit a budget that fits the times," Mr Bush said.
"It will provide every tool and resource to the military, will protect
the homeland, and meet other priorities of the government."
The US has said it is committed to a strong dollar.
But the dollar's weakness has hit European and Asian exporters and lead
to calls for US intervention to boost the currency.
Mr Bush, however, has said the best way to halt the dollar's slide is
to deal with the US deficit.
"It's a budget that I think will send the right signal to the financial
markets and to those concerned about our short-term deficits," Mr Bush
added.
"As well, we've got to deal with the long-term deficit issues."
(Agencies) | 
Updated: 2004-12-21 09:24